Business Interruption
What is Business Interruption Insurance?
Business Interruption Insurance is a policy designed to protect your business income after a loss and to ensure your business financial position is the same had the loss not occurred in the first instance.
As each business is unique, the definition of loss may differ from one business to the next, however some common losses include disruption caused by service providers including electricity supply, water and communications.
What does Business Interruption Insurance cover?
Business Interruption Insurance may cover your ongoing business expenses such as paying your rent, finance obligations or payroll. It may also include expenses incurred in your return to normal business operation.
Business Interruption Insurance example
You operate a large call centre which is heavily reliant on inbound calls for income. Unfortunately the local telephone exchange has suffered a failure impacting your ability to receive calls and it’s going to take a number of weeks for your telecommunications provider to repair. In order to avoid closing the doors of your business, at significant cost you have setup a temporary office in an alternative location.
Business Interruption Insurance has protected your business income throughout the downtime, as well as any additional expenses incurred for the purpose of keeping your business operational, such as the temporary facility and relocation costs.